How To Generate Passive Income On Amazon

14 min read
Passive Income On Amazon guide

Passive income is a great, low-effort way of earning some extra money. Although we can fully rely on our passive income, it’s also easy to manage a full-time job alongside it. While this might seem too good to be true, passive income is one way for individuals to earn money without putting in a lot of effort. Amazon is a great avenue for earning passive income because it’s a great way to develop a new revenue stream or supplement your current salary

With that said, in this article, we’ll learn what passive income is and what Amazon opportunities we can leverage to earn a passive income. On top of that, we’ll also see why dropshipping is the most worthwhile Amazon venture and how to start dropshipping on Amazon.

What Is A Passive Income?

Passive income is like the fairy godmother of our bank account – it’s money that rolls in without requiring our active effort or constant presence. Picture this: we put in some work upfront, whether it’s creating an online course or eBook or even starting a dropshipping business. Then, like clockwork, that effort starts generating a steady stream of income. Notably, this happens regardless of whether we’re actively involved or sipping a cocktail on a beach somewhere. 

It’s not a get-rich-quick scheme, though. Passive income usually demands initial hard work, smart investment, or creativity. But once it kicks in, it offers financial freedom, flexibility, and free time without being chained to a traditional 9-to-5 job.

Why An Amazon Business Is The Best Way To Earn Passive Income

Earn passive income on Amazon

Building an Amazon business has become a hot ticket for those seeking passive income. To elaborate, Amazon is like the bustling metropolis of the online marketplace world. Millions of eager customers scroll through products day and night. So, setting up shop here means tapping into that colossal stream of potential buyers. 

Plus, starting an online business on Amazon requires minimal investment and minimal knowledge. Since we don’t have to pre-purchase and hold our inventory, we don’t have to invest big piles of cash to start. 

Consequently, starting an Amazon business has a low entry barrier, so we can easily kick things off. On top of that, there is little risk to selling on Amazon as a dropshipper, for example. In fact, Amazon is a safe platform that protects both its sellers and its buyers. And, considering that little investment is required, it becomes much less risky. The fact that we don’t have to hold our inventory and don’t have to invest in it makes an Amazon business easily scalable. 

Plus, with Amazon FBA (Fulfillment by Amazon), Amazon handles storage, order fulfillment, and customer service. This gives us a lot more freedom to focus on other things while alleviating the order fulfillment process. 

Best Amazon Passive Income Ideas

Amazon allows us to try out and have multiple passive income businesses. That way, we can see which passive income idea can generate the most revenue. With that said, let’s take a look at the best Amazon passive income ideas:

  • Dropship Products on Amazon
  • Amazon Influencer Program
  • Amazon Associates Program

Dropship Products on Amazon

Dropship on Amazon for passive income

For any eager entrepreneur wanting to start an eCommerce business, dropshipping is our magic bullet. Dropshipping is an online retail fulfillment method where the seller does not keep the inventory they sell in stock. Rather, we purchase the product from a third-party supplier when we make a sale. The supplier then directly ships the product to our customer. We can dropship on Amazon with minimal investment. 

Dropshipping on Amazon has a high-profit potential because we can tap into a large existing customer base. That way, we can reach a huge number of people and increase our conversion rate. As such, we can take advantage of the high-profit potential by dropshipping on Amazon. 

Amazon Influencer Program

Amazon influencer program

Another great way to earn an extra income is through Amazon’s influencer program. If we have a solid following on social media platforms, we can easily become an Amazon influencer. This program is perfect for those looking to earn some extra cash by promoting the products they love and use daily – such as fashion, makeup, or tech influencers. Promote the products to your followers, and when one of them purchases, you earn a small commission for the sale

With the Amazon Influencer Program, there is also something called Onsite Commissions. This means we can upload our product videos to specific Amazon listings. Then, when a customer views our video and then makes a purchase, we earn a commission. 

Amazon Associates Program

Amazon associates program as passive income

Affiliate marketing is another way to generate passive income on Amazon. We can easily join the Amazon Associates program and use unique affiliate links to earn a commission. These unique affiliate links work to promote and drive sales to Amazon products.

We can accomplish this by using social media or a niche blog to share the links and generate income. Promoting Amazon products on blogs using affiliate links is way more popular than anyone may think. Plus, it’s a super easy way to bring in some extra cash with little effort. 

Other Passive Income Ideas 

On top of those mentioned above, there are other great passive income ideas to pursue outside of Amazon. Although they might require some initial effort, once we kick off, we can enjoy a steady passive income stream. 

With that said, let’s take a look at some other passive income ideas:

  • Start a Blog/Website
  • Write an eBook
  • Create an Online Course

Start a Blog/Website

Starting a blog or building a website can be very fulfilling and profitable. We can create a source of passive income and creative outlet at the same time. Furthermore, regular updates will help build a loyal readership over time. In addition to this, a blog or website offers the flexibility to work on our own schedule. And, as our online presence grows, we can explore opportunities to collaborate with other bloggers or businesses, expanding our reach and revenue potential.

Write an eBook

Another alternative form of passive income is writing an eBook that we can continuously sell. We need to choose a topic that will complement our expertise and deal with a relevant issue or interest in the market. This could be anything from a comprehensive guide on a technical subject to a captivating fiction story.  Once our eBook is complete, explore various platforms for self-publishing, such as Amazon Kindle Direct Publishing (KDP) or other ebook distribution services. Take the time to design an appealing cover and then write a striking description. Then, just start selling it and see the passive income stream come through. 

Create an Online Course

Creating an online course is a dynamic way to share our expertise while generating passive income. Firstly, identifying a subject we are knowledgeable and passionate about is key. This will help provide more quality content, which will attract more customers. Secondly, outlining the course content and breaking it down into lessons will help make the course more appealing. Once we develop the course content, we can choose a platform for hosting courses online, such as Udemy, Teachable, or Skillshare.

Start An Amazon Dropshipping Business For A Passive Income

To begin dropshipping on Amazon, there are a few steps we first need to cover. With that said, let’s take a look at how to dropship on Amazon:

  • Product Research 
  • Select A Dropshipping Supplier
  • Connect Your Amazon Store With AutoDS – Automation Tool 
  • Add Products To Your Store 
  • Fulfill Your Orders

Product Research

Find winning products to dropship for passive income

Product research is integral to the success of our business – especially when dropshipping on a competitive platform like Amazon. The key to effective product research is to use data-driven methods to identify winning products. 

With that said, there are a few factors that can help us determine winning products: 

  • High demand
  • Low competition
  • Positive reviews
  • Profitability
  • Trends 
  • Quality 

In order for us to conduct quality product research, there are a few methods we can take advantage of: 

  • AutoDS Winning Products Hub
  • AutoDS Product-Finding Blog & YouTube Channel
  • Amazon Best Sellers / Movers & Shakers 
  • AliExpress Dropship Center
  • Google Trends & Google Lens

As an example, let’s take a look at the AutoDS Winning Products Hub. Product research is very time-consuming, but we can automate our product research process with AutoDS’ Winning Products Hub. The AutoDS Winning Products Hub gives us the hottest, best-selling items in no time. 

In fact, by going on the AutoDS Winning Products Hub dashboard, we can easily find popular items that are selling well, along with detailed analytics. 

Select A Dropshipping Supplier

Find a dropshipping supplier

Once we have identified our best-selling products, our next step is to find reliable dropshipping suppliers. We must ensure that our suppliers are a good fit for our business.

To ensure we choose a suitable and reliable supplier, we need to consider some key characteristics, such as:

  • International Warehouses
  • Fast Shipping & Delivery Times
  • Partner With Reliable Shipping Couriers 
  • Various Payment Options 
  • Affordable Product Pricing 
  • Wide Product Range
  • Positive Reviews
  • Excellent Customer Service
  • Practical return, payment, and shipping policies 

We should note that it’s best to work with multiple suppliers. As such, we can compare prices and shipping times. Plus, if one supplier is out of stock, we can quickly fall back on another. It also gives a chance to offer more products and multiple different varieties. That way, we can appeal to a larger customer base. 

Furthermore, there are a good number of reliable suppliers to work with, like AliExpress, Banggood, and more. But, it’s also a good idea to check out the 25+ AutoDS-supported suppliers. This allows us to automate everything from sourcing to order fulfillment and more. Therefore enabling us to run our business efficiently.


Dropshippers need to do product research and source their chosen items based on their business goals. Discover the Best Ways To Find & Source Products For Dropshipping.

Connect Your Amazon Store With AutoDS – Automation Tool 

One of the best aspects of dropshipping on Amazon is that we can automate our dropshipping process! As a result, we save time and effort while reducing errors in any of the steps. Plus, by automating our dropshipping processes, we can optimize our business and boost profits. 

With this in mind, the best all-in-one automation tool to use is AutoDS. With AutoDS, we can achieve:

  • Quick product importing
  • Price/Stock automation
  • Automatic orders

To demonstrate, first, we need to navigate to the AutoDS platform and register. Then, for us to connect our Amazon store to AutoDS, we need to select ‘Add Store.’ We can find this in the store selection section in the left menu bar. 

Then, we need to select what type of store we are adding. And, in our case, we will choose an Amazon store. 

Connect your Amazon store with AutoDS

After this step, we must sign into the Amazon Seller Center and continue. Once we are signed in, we’ll confirm the connection to AutoDS. 

As long as we’re signed in to our seller account, AutoDS will synchronize with our Amazon store. Now we’ll be able to automate our dropshipping processes. 

Add Products To Your Store 

Add products to your Amazon store

Now, we need to start importing our products to our dropshipping store. The common and not-so-efficient way of importing products is manually. 

Although it gets the job done, manual dropshipping is more laborious and does require a bigger time investment. Essentially, by manually importing our products, we have to copy/paste each supplier’s product information from their website. Then, we have to transfer the details one by one to our selling channel, which takes up a lot of our time. 

On the other hand, by automating the process with the AutoDS product importer, we can easily import products. With just one click of a button, we can source from any supplier. In addition, we can import a single product, import in bulk, or even schedule product imports for later dates. 

Fulfill Your Orders

Fulfill your Amazon orders automatically

To ensure customer satisfaction, we must fulfill orders immediately. So, to fulfill orders on Amazon manually, we start by getting the shipping address from the order details page. Then, we ship the order to the buyer using the delivery address and the requested shipping method. Lastly, click Confirm Shipment from ‘Manage Orders’ and complete the required information.

Undeniably, the sales will start pouring in. If we fulfill orders manually, we risk having errors and delays. As a solution, we can automate our order fulfillment process, save time and effort, and avoid making errors. With a tool like AutoDS Automatic Orders, the system can fulfill the orders for us.

With the AutoDS Automatic Orders tool, our orders will appear on the orders page from our AutoDS dashboard. Then, the system will automatically process it from our supplier directly to our buyer. Plus, as soon as tracking information is available from our supplier, AutoDS will grab it and update it automatically on our customers’ orders.


All in all, there are numerous ways to make a passive income on Amazon. However, from what we’ve seen, dropshipping is the most worthwhile venture to take up. Although it may take a bit of effort at the beginning, we can always make it easier for ourselves and automate our dropshipping processes. Plus, it gives us the most opportunities to generate a hefty passive income. 

With that said, to help us out in generating passive income, we can take a look at these super helpful articles:

Written by Artem Zmitrovich

Artem is a versatile person with a wide range of knowledge and skills, good erudition. With his technical and soft skills, Artem is always happy to help.

Leave a Reply

Your email address will not be published. Required fields are marked *